Investments help you achieve your life goals across multiple time frames. Be it meeting marriage expenses, financing your Home Loan down payment, financing your child's education, or living a comfortable retirement life. Hence, you should actively invest. Typically, start investing early. It provides a decent timeline for wealth creation. However, if you missed the bus, you can begin investing.
Exchange Traded Funds are an incredible investment option for wealth creation. It possesses an extensive scope for diversification and is easily tradeable. There are various types of ETFs: Equity, Index, Bond, Commodity and International. Most of them are well-known, except for Commodity ETFs. Let us understand them better.
What are Commodity ETFs?
ETFs track underlying assets for their returns and risks. Commodity ETFs involve commodities as their underlying asset. A Commodity ETF invests in commodities' physical stock, futures contracts, or a commodity index. Commodity demand, supply, and prices fluctuate. Hence, investing in them via ETF is a great idea. It offers a chance to make substantial gains from your investment.
You can invest in Commodity ETFs through any leading stockbroker firm, offline or online. You can invest as Lumpsum Investments or take the Systematic Investment Plan route.
Different Commodity ETFs
Commodity ETFs can further be classified into the following types:
Gold ETFs
Gold ETFs are by far the most popular Commodity ETFs. It tracks the domestic physical gold price. This means your ETF holds the same value as physical gold units. A plus point of investing in ETFs is that they do not confer physical ownership of gold. This eliminates storage concerns and hassles of storage. Your Gold ETFs are securely held in your Demat Account. You can trade them easily in the open market whenever feasible.
Silver ETFs
Silver is the second most popular metal in India after gold. Most Indians buy silver coins, religious idols, and jewellery on auspicious occasions. You can invest in silver via ETFs, too. Silver ETFs are like Gold ETFs. They track the physical silver price. Investing in them is like investing in physical silver units.
Your Silver ETFs are held in your Demat Account, ensuring maximum security. Silver ETFs are not vulnerable to wear and tear. Hence, your investment retains its entire value.
Natural resources
India is a powerhouse of natural resources. They have tremendously contributed to India's economic growth. You can benefit from India's valuable natural resources by investing in them via ETFs. Do the necessary research online to find the top natural resources ETF Funds. Invest in an ETF that matches your investment criteria.
Agricultural goods
India is a leading producer of agricultural goods globally. It churns out significant profits every year. You can consider investing in farm goods ETFs. They are perfect to diversify your portfolio and earn reasonable returns.
